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E S T A B L I S H E D 1 9 9 2 W O R T H M A G A Z I N E San Diego’s Business Across the Border; Charleston’s New Muscle; Nashville Expands Its Repertoire How U.S. Cities Do Business Overseas; One Man’s Mission to Revive New Orleans; How Smart Is Your City? Palm Springs’ Youth Movement; Atlanta’s Kitchens Heat Up; Pittsburgh Shakes Off the Rust WORK \ FINANCE \ LIFE 42 WORTH.COM VOLUME 25 | EDITION 03 THE 15 MOST DYNAMIC CITIES IN AMERICA

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Page 1: PIONEER FINANCIAL AT NORTHWESTERN …s) for themselves or their signifi-cant other. Historically, the basket of goods tracked ... PIONEER FINANCIAL AT NORTHWESTERN MUTUAL – PARK

E

S T A B L I S H E D 1 9 9 2

WO

R T H M A G A Z I NE

San Diego’s Business Across the Border; Charleston’s New Muscle; Nashville Expands Its Repertoire

How U.S. Cities Do Business Overseas; One Man’s Mission to Revive New Orleans; How Smart Is Your City?

Palm Springs’ Youth Movement; Atlanta’s Kitchens Heat Up; Pittsburgh Shakes Off the Rust

W O R K \ F I N A N C E \ L I F E

42W O R T H . C O M

V O L U M E 2 5 | E D I T I O N 0 3

T H E 1 5 M O S T DY N A M I C C I T I E SI N A M E R I C A

Page 2: PIONEER FINANCIAL AT NORTHWESTERN …s) for themselves or their signifi-cant other. Historically, the basket of goods tracked ... PIONEER FINANCIAL AT NORTHWESTERN MUTUAL – PARK

L E A D I N G W E A L T H A D V I S O R | N E W Y O R K , N Y

I L L U S T R A T I O N B Y K E V I N S P R O U L S

How efficient is the balance sheet of the average high net worth individual?B Y M I C H A E L S . S C H WA R T Z , C F P ® , A E P ®

Seated, left to right: Michael S. Schwartz, James L.

DiNardo; standing, left to right: Kevin R. Luchetta, Paul D.

Tortorella, Stephen A. Schwartz

PIONEER FINANCIAL AT NORTHWESTERN MUTUAL – PARK AVENUE

245 Park Avenue, Suite 1800, New York, NY 10167 646.459.6366

TEAMKevin R. Luchetta, CFP®, AEP®, Partner

Michael S. Schwartz, CFP®, AEP®, Partner

Stephen A. Schwartz, CFP®, AEP®, Partner

James L. DiNardo, CLU®, ChFC®, CFP®, MSFS®, Partner

Paul D. Tortorella, Partner

FINANCIAL SERVICES EXPERIENCE Kevin R. Luchetta, 18 years Michael S. Schwartz, 17 years Stephen A. Schwartz, 16 years James L. DiNardo, 16 years

ASSETS UNDER MANAGEMENT Confidential

COMPENSATION METHOD Asset-based fees and commissions (investment and insurance products)

PRIMARY CUSTODIAN FOR INVESTOR ASSETSAccounts held at Northwestern Mutual Investment Services LLC, an introducing broker-dealer, member FINRA, SIPC. Accounts carried, and all transactions executed, cleared and settled through Pershing, A BNY Mellon Company, member FINRA, NYSE and SIPC.

PROFESSIONAL SERVICES PROVIDED Financial planning, investment advisory, risk management and money management services

MINIMUM FEE FOR INITIAL MEETINGNone required

MINIMUM NET WORTH REQUIREMENT $1 million

[email protected]@[email protected]@nm.com

WEBSITEwww.pioneer.financial

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Page 3: PIONEER FINANCIAL AT NORTHWESTERN …s) for themselves or their signifi-cant other. Historically, the basket of goods tracked ... PIONEER FINANCIAL AT NORTHWESTERN MUTUAL – PARK

he proper management of one’s balance sheet can be challenging for even the most financially astute high net worth investors. A personal bal-ance sheet is a simple tool in which all assets (left side) and liabilities (right side) are listed. However, high net worth individuals tend to focus on the left side of the balance sheet and often pay less attention to their present and future liabilities.

The current interest-rate environment presents a compelling opportunity to re-view existing liabilities in the context of asset allocation and investment goals. As a financial advisor, I consistently research and provide insight and opine on some of the following items:

• Unsecured loans—credit cards, personal loans;

• Mortgages and home equity line of credit loans—residential and com-mercial real estate;

• Securities-based loans and advi-sory fees—hard and soft costs;

• Premium expenses—life, disabil-ity, long-term care and homeowners insurance.

These items make up the right side of the balance sheet and indirectly affect the left side.

My goal as a financial advisor is to help my clients attain additional returns on their balance sheet without taking addi-tional equity risk premium in the markets.

When speaking with clients, one issue that often flies under the radar of even vigi-lant investors’ attention is inflation. Inflation is a major factor affecting long-term asset value, and high net worth investors face a few key challenges planning for it.

Odds are that you have not heard of CLEWI—the Cost of Living Extremely Well Index, launched by Forbes in 1982. The

index is based on the selection of 40 goods and services customarily reserved for very wealthy customers.

The index shows that high net worth indi-viduals particularly want to send their chil-dren to preparatory schools and a college like Harvard University; go to the opera on a consistent basis; and purchase a designer handbag(s) for themselves or their signifi-cant other.

Historically, the basket of goods tracked by the CLEWI has exceeded inflation by an average of 2.5 percentage points annually.1 So what does that tell you? Well, it simply highlights the fact that the cost of luxury goods and services is outpacing inflation.

A sound financial plan accounts for, fore-casts and models inflation along with, these escalating costs. That is why it is crucial to

work with a qualified financial advisor and not just an advisor who manages your money. Even the wealthiest can lose signifi-cant asset value over time if their liabilities are not managed properly and they are not following and updating a comprehensive financial plan.

Aligning with the right financial advisor is key to keeping these often-overlooked items in check. He or she will be able to not only look at things on a granular level but also to analyze things holistically on a macro level.

In short: Just because people make a lot of money does not mean that they can af-ford to overlook the right side of the bal-ance sheet. l

1 “Want To Live The 1% Life? Here’s How Much It Costs.” Forbes. 2015.

Michael S. Schwartz offers advisory services as a repre-sentative of Northwestern Mutual Wealth Management Company (WMC), a limited purpose federal savings bank, and a wholly owned subsidiary of The Northwestern Mutual Life Insurance Company, Milwaukee, Wis., (NM). Northwestern Mutual is the fleet name for NM, its subsid-iaries and affiliates. Investments held with or managed by WMC are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by WMC or its affili-ates and are subject to investment risks, including loss of the principal. Michael S. Schwartz is an insurance agent of NM (life insurance, annuities and disability income insurance), and Northwestern Long Term Care Insurance Company, a subsidiary of NM, and a registered repre-sentative of Northwestern Mutual Investment Services, LLC (NMIS), an NM subsidiary, broker-dealer, investment advisor, member FINRA, SIPC. Pioneer Financial is a marketing name used by a group of Northwestern Mu-tual representatives (not all of whom are affiliated with WMC) including Michael S. Schwartz (referred to as the “firm”), and is not a legal entity, partnership, investment advisor, broker-dealer or affiliate of NM. The information contained in this article is not a solicitation to purchase or sell investments or securities. The views expressed herein are those of the author and may not necessar-ily reflect the views of Northwestern Mutual. Certified Financial Planner Board of Standards, Inc. owns the cer-tification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame logo), which it awards to individuals who successfully complete initial and ongoing certification requirements.

P I O N E E R F I N A N C I A L A T N O R T H W E S T E R N M U T U A L – P A R K A V E N U E

PIONEER FINANCIAL AT NORTHWESTERN MUTUAL PROVIDES FINANCIAL

SERVICES TO HIGH NET WORTH AND EMERGING HIGH NET WORTH

INDIVIDUALS, FAMILIES AND BUSINESS ENTERPRISES. Pioneer Financial’s

team of 15 associates/staff serve clients nationwide from their Park Avenue office in

New York City. Kevin R. Luchetta, Michael S. Schwartz, Stephen A. Schwartz and James

L. DiNardo are wealth management advisors and CERTIFIED FINANCIAL PLANNERTM

practitioners. The practice is focused on assisting clients through comprehensive

financial planning that includes asset management, retirement funding, risk

management, estate preservation and distribution. l

A B O U T U S

My goal as a financial advisor is to help my clients attain additional returns on their balance sheet without taking additional equity risk premium in the markets.

175WO R T H .CO M J U N E - J U LY 2 0 1 6

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Pioneer Financial at Northwestern Mutual – Park Avenue is featured in Worth® 2016 Leading Wealth Advisors™, a special section in every edition of Worth® magazine. All persons and firms appearing in this section have completed questionnaires, have been vetted by an advisory group following submission by Worth®, and thereafter paid the standard fees to Worth® to be featured in this section. The information contained herein is for informational purposes, and although the list of advisors presented in this section is drawn from sources believed to be reliable and independently reviewed, the accuracy or completeness of this information is not guaranteed. No person or firm listed in this section should be construed as an endorsement by Worth®, and Worth® will not be responsible for the performance, acts or omissions of any such advisor. It should not be assumed that the past performance of any advisors featured in this special section will equal or be an indicator of future performance. Worth®, a publication of the Worth Group LLC, is a financial publisher and does not recommend or endorse investment, legal or tax advisors, investment strategies or particular investments. Those seeking specific investment advice should consider a qualified and licensed investment professional. Worth® is a registered trademark of the Worth Group LLC.

Kevin R. Luchetta, CFP®, AEP® Partner

Michael S. Schwartz, CFP®, AEP® Partner

Stephen A. Schwartz, CFP®, AEP® Partner

James L. DiNardo, CLU®, ChFC®, CFP®, MSFS® Partner

Paul D. Tortorella Partner

Pioneer Financial at Northwestern Mutual – Park Avenue245 Park Avenue, Suite 1800

New York, NY 10167Tel. 646.459.6366

[email protected] [email protected] [email protected]

[email protected]

R E P R I N T E D F R O M

®

T H E E V O L U T I O N O F F I N A N C I A L I N T E L L I G E N C E